The Purpose of Remittances – Evidence from Germany

Thomas Bauer (thomas.bauer@rwi-essen.de) and Mathias Sinning (mathias.sinning@anu.edu.au)

No 109, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper examines the purpose of remittances using individual data of migrants in Germany. Particular attention is paid to migrants' savings and transfers to family members in the home country. Our findings indicate that migrants who intend to stay in Germany only temporarily have a higher propensity to save and save larger amounts in their home country than permanent migrants. A similar picture emerges when considering migrants' payments to family members abroad. The results of a decomposition analysis indicate that temporary and permanent migrants seem to have different preferences towards sending transfers abroad, while economic characteristics and the composition of households in home and host countries are less relevant.

Keywords: International migration; savings; remittances (search for similar items in EconPapers)
JEL-codes: D12 D91 F22 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: The Purpose of Remittances: Evidence from Germany (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:109

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